Morgan Stanley has lowered its forecast for New Oriental-S (09901) for the 2025 to 2027 fiscal years by 11.6% to 13.3% under non-generally accepted accounting principles.
According to the Wise Finance and Economics APP, Morgan Stanley released a research report stating that it has lowered its forecast for New Oriental-S (09901) for the 2025 to 2027 fiscal years by 11.6% to 13.3%, based on the adjustment of the company's revenue forecast and non-generally accepted accounting principles operating profit forecast. The stock's target price on the Hong Kong stock market has been reduced from 71 Hong Kong dollars to 63.1 Hong Kong dollars, with a projected PE ratio of 25 times for the 2025 fiscal year, and an investment rating of "outperform the market".
The bank predicts that New Oriental's non-academic K9 business remains strong, while overseas exam preparation business may grow or slow down in the first quarter of the 2025 fiscal year. The bank believes that the main anchor Dong Yuhui, since the end of July, has split from the company, and in the first quarter of the 2025 fiscal year recorded relevant expenses for East Buy (01787), the last quarter. The bank also believes that the company has the ability to increase shareholder returns through regular dividends, and points out that the company has 4.9 billion US dollars in net cash, equivalent to 42% of the market cap.